PIPL
China's comprehensive law for personal information protection
SQF
GFSI-benchmarked food safety certification standard
Quick Verdict
PIPL mandates data protection for China operations with hefty fines, while SQF is voluntary food safety certification for global supply chains. Companies adopt PIPL for legal compliance and market access; SQF for retailer approval and risk reduction.
PIPL
Personal Information Protection Law (PIPL)
Key Features
- Extraterritorial scope for foreign processors targeting China
- Explicit separate consent for sensitive personal information
- Cross-border transfers via SCCs or security assessments
- Fines up to 5% of annual revenue
- Mandatory impact assessments for high-risk processing
SQF
Safe Quality Food (SQF) Food Safety Code
Key Features
- Modular: Module 2 backbone + sector GMP modules
- HACCP-based Food Safety Plan mandatory
- Full-time onsite SQF Practitioner required
- GFSI-benchmarked global recognition
- Annual audits with nonconformity scoring
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
PIPL Details
What It Is
PIPL (Personal Information Protection Law), enacted November 1, 2021, is China's comprehensive national regulation governing personal information processing. It protects natural persons' rights while regulating collection, use, storage, transfer, and deletion by domestic and foreign organizations. Modeled partly on GDPR but consent-centric, it uses a risk-based approach emphasizing data minimization, transparency, and national security.
Key Components
- Eight chapters, 74 articles covering processing rules, cross-border transfers, individual rights, handler obligations.
- Core principles: lawfulness, necessity, minimization, accountability.
- Sensitive personal information (SPI) rules, seven legal bases (consent primary), mandatory impact assessments.
- Compliance via phased frameworks, no formal certification but CAC security reviews for transfers.
Why Organizations Use It
Legal mandate for China-exposed entities; avoids fines up to 5% revenue. Enhances market access, customer trust, operational resilience. Mitigates breach risks, enables compliant cross-border flows, boosts competitive edge in $18T digital economy.
Implementation Overview
Phased: gap analysis, data mapping, policies, controls, audits (6-12 months). Applies universally to MNCs, platforms handling Chinese PI. Requires DPOs, representatives for foreigners; ongoing monitoring, training essential. (178 words)
SQF Details
What It Is
Safe Quality Food (SQF) is a GFSI-benchmarked certification program administered by SQFI. It provides a HACCP-based management system for food safety (and optional quality) across the supply chain, from farm to fork, via modular codes tailored to sectors like manufacturing and storage.
Key Components
- **Modular structureUniversal Module 2 (System Elements) + sector-specific GMPs (e.g., Module 11 for processing).
- Over 20 mandatory elements including HACCP plans, traceability, allergen management, food defense.
- Built on Codex HACCP principles; annual third-party audits with scoring (E/G/C/F grades).
Why Organizations Use It
- Meets retailer/brand de facto requirements for market access.
- Reduces recalls, audit duplication; aligns with FSMA/EU regs.
- Builds food safety culture, supplier resilience, operational efficiency.
Implementation Overview
- Phased: gap analysis, documentation, training, internal audits, certification.
- Applies to all sizes/industries; 6-12 months typical; requires SQF Practitioner.
Key Differences
| Aspect | PIPL | SQF |
|---|---|---|
| Scope | Personal information collection, processing, transfer | Food safety management, HACCP, quality controls |
| Industry | All sectors handling Chinese personal data | Food manufacturing, storage, distribution globally |
| Nature | Mandatory national law with CAC enforcement | Voluntary GFSI-benchmarked certification |
| Testing | DPIAs, security assessments, CAC reviews | Annual third-party audits, internal verification |
| Penalties | Fines up to 5% revenue or RMB 50M | Loss of certification, no legal fines |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about PIPL and SQF
PIPL FAQ
SQF FAQ
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